Aon — backed Cortina faces market criticism

Cortina would take 3% of Aon's global catastrophe treaties and 5% of remaining treaty book Capacity would be offered for three years at 5% discount to approved lead reinsurers' terms Lloyd's says Cortina has yet to begin executive-level governance approval process By George Abbott and Michael Jones Sept 18 (The Insurer) — Aon’s proposed Blackstone-backed Cortina vehicle has drawn criticism from brokers and reinsurers concerned about lost business and pressure on pricing, although several market participants said the model could be copied by rivals if it succeeds. The proposed launch of Cortina was first reported during the Monte Carlo Rendez-Vous. Interviews conducted by The Insurer indicated that views of the plan largely reflected competing commercial interests. According to market sources, Cortina is expected to operate through a Lloyd’s syndicate, taking a 3% following line on Aon’s global catastrophe treaty placements and 5% on the remainder of its treaty book, excluding life and retrocession. The sources said capacity would be offered for three years at a 5% discount to terms established by approved lead reinsurers. The Insurer reported on September 11 that approximately $500